THE Securities and Exchange Commission (SEC) has warned the public against investing in ZILD Telecommunication Repair Services (ZILD TRS), saying the entity and its owner Joan de Jesus Manlapig are not authorized to solicit investments.
In an advisory, the commission said ZILD TRS has been enticing individuals, particularly overseas Filipino workers, to invest amounts of up to P450,000 with promised return of 30 percent monthly within 30 to 45 days. The regulator flagged the offer as indicative of a fraudulent investment scheme.
The SEC said that while the business may appear to be engaged in legitimate telecommunications repair services, this does not grant it authority to offer investment contracts to the public.
It explained that such offerings are considered securities under Republic Act 8799 and must be registered, with sellers required to secure proper licenses.
The commission said ZILD TRS was not registered as a corporation or partnership and had no license to solicit, accept or take investments or issue securities.
The regulator reiterated that promises of unusually high returns over a short period are common hallmarks of Ponzi-type schemes, where payouts to existing investors are sourced from new investors’ funds rather than legitimate business activities.
It also warned that individuals acting as agents, promoters, recruiters, influencers or endorsers of ZILD TRS may face criminal liability.
Penalties include fines of up to P5 million, imprisonment of up to 21 years, or both.
